The distillery was founded in 1893 by John Morrison, who purchased the land from the Duke of Fife to produce whisky for Haig's after several springs on the southern slope of Knock Hill were discovered. The site was also chosen for its proximity to the Knock Station. Not only was the new location convenient to the railway but it was also within a few miles of a district noted both for its barley and inexhaustible source of excellent peat. The distillery was the first to be built by Distillers Company Ltd. The distillery draws its water from burns on the nearby Knock hill. The production capacity of the distillery stands at 1.5 million liters a year. Despite being small, the Knockdhu whisky distillery boasts large onsite storage facilities; its five warehouses have space for 7,600 casks. Internally, it is a mix of the old and new. The mash tun has a lauter system, but the washbacks are wooden, while the distillate is condensed in worm tubs. Its ownership passed to Inver House in 1988, who soon had a single malt on the market. This was called AnCnoc, rather than the distillery name, which Inver House felt was too similar to the already established Knockando.